Top Crypto Investment Product Moves This Week: Grayscale & Fidelity Lead the Race

Grayscale Files to Convert Digital Large Cap Fund into ETF Amid Growing Altcoin Interest

Grayscale Investments has filed an S-3 form with the U.S. Securities and Exchange Commission (SEC) to convert its Digital Large Cap Fund into an exchange-traded fund (ETF), marking a significant step in integrating digital assets with mainstream investment options. This initiative, submitted on April 1, 2025, aligns with Grayscale’s strategy to enhance investor access to cryptocurrencies. Additionally, recent developments include Nasdaq’s filing to list Grayscale’s Avalanche (AVAX) ETF, which aims to broaden investment opportunities in digital assets. This follows the asset manager's previous proposal to launch a Hedera ETF, illustrating a growing trend among investment firms to create altcoin ETFs amid increasing market interest. Notably, firms like Canary Capital and 21Shares are also pursuing similar initiatives, particularly in light of the optimistic sentiment surrounding XRP ETFs post-Ripple lawsuit developments. Grayscale's actions signify a broader movement toward legitimizing cryptocurrency investments through regulated financial products.

Grayscale Launches Two New ETFs to Generate Income from Bitcoin Volatility

Grayscale has launched two new Bitcoin exchange-traded funds (ETFs)—the Grayscale Bitcoin Covered Call ETF (BTCC) and the Grayscale Bitcoin Premium Income ETF (BPI)—aimed at generating income from Bitcoin's volatility. BTCC focuses on immediate high-yield returns by writing call options close to Bitcoin’s spot price, enabling regular cash flow through option premiums while preserving Bitcoin exposure. Conversely, BPI adopts a growth-oriented strategy by writing out-of-the-money call options, allowing investors to earn premiums while still benefiting from Bitcoin’s price appreciation. Both funds are actively managed and promise monthly income distributions, catering to investors seeking diversified income streams in the crypto asset class. David LaValle, Grayscale’s Global Head of ETFs, emphasizes that these products meet investors' unique needs by providing passive income opportunities while capitalizing on existing Bitcoin holdings. The launch highlights the increasing popularity of crypto-linked investment products in U.S. markets, reflecting a growing demand for diverse investment strategies.

Fidelity Launches Crypto-Focused IRAs for Bitcoin, Ether, and Litecoin Investments

Fidelity Investments has introduced a crypto-focused Individual Retirement Account (IRA) allowing U.S. investors to include cryptocurrencies in their retirement portfolios. The Fidelity Crypto for IRAs currently limits investments to bitcoin, ether, and litecoin, which rank as the first, second, and twenty-third largest cryptocurrencies by market capitalization. The offering includes three specific account registrations: the Fidelity Crypto Roth IRA, Fidelity Crypto Traditional IRA, and Fidelity Crypto Rollover IRA. Investors must be U.S. citizens aged 18 or older to access these accounts. This initiative reflects Fidelity's commitment to evolving investment solutions catering to the changing preferences of customers, accompanied by educational support. The launch coincides with a broader trend of increasing digital asset investment vehicles, including recently launched exchange-traded funds focused on solana and proposals for funds tracking other cryptocurrencies. This move positions Fidelity at the forefront of integrating digital assets into traditional retirement planning.

Franklin Templeton Plans Bitcoin ETP Launch Amid Growing Institutional Demand

Franklin Templeton, a global asset manager with $1.5 trillion in assets, is exploring the launch of a Bitcoin Exchange-Traded Product (ETP) in Europe, driven by growing institutional demand for digital assets. This Bitcoin ETP would offer a regulated and convenient investment vehicle for exposure to Bitcoin without the need for direct ownership. If the launch is approved, it could enhance Bitcoin's integration into traditional finance, potentially drawing in more institutional capital and further legitimizing the cryptocurrency market. This move reflects a broader trend of major financial firms entering the crypto space as interest in digital assets expands.

VanEck Unveils BNB ETF Bid and Celestia ETN Launch

VanEck is intensifying its cryptocurrency strategy by filing for the first U.S.-listed Binance Coin (BNB) ETF and launching a Celestia ETN in Europe. The BNB ETF, filed on March 31, positions VanEck to enter the growing market of regulated crypto investment products, with BNB priced at approximately $608 and demonstrating low volatility, making it an ideal candidate. This ETF marks VanEck's fifth proposed cryptocurrency ETF, following successful launches of Bitcoin and Ethereum ETFs. Concurrently, VanEck Europe announced the VanEck Celestia ETN, launched on March 27, which tracks Celestia's native token, TIA, with a Net Asset Value of $8.28 and total net assets of $27.75 million. While both initiatives face potential regulatory challenges, they reflect VanEck's strategic commitment to merging traditional finance with blockchain technology, enhancing institutional investors' access to innovative digital assets amidst evolving market dynamics.

WisdomTree Launches 13 Tokenised Funds on Multi-Blockchain Connect Platform

WisdomTree has launched 13 tokenised funds through its chain-agnostic WisdomTree Connect platform, which now supports Arbitrum, Base, Avalanche, Ethereum, and Optimism blockchains. This expansion follows rising interest from institutional clients in tokenised assets. Unlike traditional money market fund providers, WisdomTree's platform allows investors to create custom funds on-chain, including index, fixed income, and asset allocation funds, as well as their proprietary money market fund, WTGXX. The firm aims to cater to diverse investor needs, responding to market requests for more than just money market options. WisdomTree’s Maredith Hannon emphasized the importance of this expansion for accessibility and the platform’s ability to provide users with a seamless experience across multiple chains without leaving their original networks. This initiative aligns with broader trends, as seen by Fidelity Investments' recent launch of a Retirement Plan that allows direct investment in crypto assets, highlighting growing institutional interest in digital finance.

Fidelity Launches No-Fee Bitcoin 401(k) Plan for US Investors

Fidelity has launched a no-fee Bitcoin retirement plan for US investors, allowing them to invest in Bitcoin through their 401(k) accounts. This initiative aims to simplify retirement saving while incorporating cryptocurrency into investment portfolios. By eliminating account fees, Fidelity provides a cost-effective method for investors to increase their Bitcoin holdings, positioning it as a viable alternative to traditional stocks and bonds. As Bitcoin is often viewed as “digital gold,” this new offering reflects a shift towards mainstream acceptance of crypto amidst inflation concerns and economic uncertainty. Despite its potential for long-term growth, Bitcoin's volatility remains a significant risk, prompting financial advisors to recommend cautious investment practices. Fidelity emphasizes the importance of providing innovative choices that align with modern savers' needs, encouraging diversification while highlighting the necessity of a balanced portfolio for financial success.

SEC Recognizes Fidelity's Solana ETF Application as SOL Drops Amid Tariff Turmoil

The SEC has acknowledged Fidelity's application for a spot Solana ETF to be traded on the Cboe BZX Exchange, amidst a broader market decline caused by President Trump's new global tariffs, which resulted in a 12% drop in Solana (SOL) within 24 hours. Fidelity's proposed fund aims to hold physical SOL tokens and stake some through trusted providers, highlighting Solana’s $2 billion average daily trading volume and $90 billion fully diluted market cap over the last 180 days as grounds to prevent market manipulation without a surveillance agreement. This move extends Fidelity's digital asset ETF offerings, following its recent application for a spot Ethereum ETF. Concurrently, the SEC appears to be shifting its regulatory stance on crypto, as evidenced by the Senate Banking Committee's advancement of Paul Atkins as SEC chair, who supports clearer digital asset regulations. This transition raises expectations for the approval of more crypto ETFs from firms like Grayscale, VanEck, and Bitwise.

Grayscale Files S-1 for Solana ETF on NYSE Arca, Excludes Staking Amid Fidelity's Bid

Grayscale Investments has officially submitted an S-1 form to the U.S. Securities and Exchange Commission aiming to convert its Grayscale Solana Trust (GSOL) into a spot Solana ETF, set to be listed on NYSE Arca. This follows a prior 19b-4 filing with the NYSE in December 2024, demonstrating Grayscale's dedication to increasing cryptocurrency access for investors on Wall Street. Notably, the proposed ETF will exclude Solana staking functionality, mirroring the approach taken with Grayscale's Bitcoin and Ethereum ETFs to satisfy regulatory requirements. Despite recent market volatility, with Solana's price hitting a 13-month low of $114.50, analysts remain optimistic about the approval prospects due to the SEC's new crypto-friendly leadership and the presence of a regulated futures market for Solana in the U.S. This filing comes shortly after the SEC acknowledged Fidelity’s application for a spot Solana ETF, reflecting heightened institutional interest in the cryptocurrency.

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